Who Has Affordable Honolulu Auto Insurance Rates for First-time Drivers?

You have probably watched the commercials from insurers like GEICO, Nationwide, and Liberty Mutual that claim huge savings. So you should just pick one at random, right?

It’s not that simple, unfortunately, as there are a lot of unknown elements such as tickets or driving violations, whether you are female or male, where you live in Honolulu, and if you just need liability coverage, that help determine the price you have to pay. We will attempt to cover the best ways to save money and will hopefully give the reader a good start in finding the cheapest insurance in Hawaii.

For new drivers, one of the more important things that determine auto insurance rates is where you choose to live in Honolulu. Areas with more people or higher crime rates tend to have higher rates, whereas areas with less congestion benefit from lower coverage costs.

The table below ranks the most expensive places in Hawaii for first-time drivers to buy an auto insurance policy in. Honolulu shows up at #17 with a yearly premium of $1,016 for the average insured, which is approximately $85 each month.

Car insurance prices in Honolulu
Rank City Annual Premium
1 Hilo $1,131
2 Makakilo $1,057
3 Waipahu $1,057
4 Kailua $1,052
5 Nanakuli $1,047
6 Wahiawa $1,047
7 Waianae $1,047
8 Ewa Beach $1,046
9 Royal Kunia $1,046
10 Schofield Barracks $1,036
11 Kapolei $1,036
12 Wailuku $1,026
13 Ewa Gentry $1,026
14 Halawa $1,016
15 Pearl City $1,016
16 Mililani Mauka $1,016
17 Honolulu $1,016
18 Kaneohe $1,005
19 Waimalu $1,005
20 Mililani Town $1,005
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Prices are approximated as specific location information can increase or decrease price quotes noticeably.

Deciphering which companies quote the best auto insurance rates for first-time drivers will involve a tad more effort in order to find coverage that fits your budget. Each auto insurance company uses a little different formula for determining rates in each state, so let’s take a look at the auto insurance companies with the overall best prices in Honolulu.

It’s a good idea to know that Honolulu auto insurance rates are based on many factors that may substantially change your annual premium. Getting older, adding a teenager to your policy, or getting a ticket for running a stop sign may generate price changes that can make some companies cheaper in comparison to the competition.

Cheapest Insurance Rates for Inexperienced Drivers

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Rankings for the cheapest Hawaii auto insurance companies
Rank Company Cost Per Year
1 USAA $926
2 State Farm $1,087
3 GEICO $1,389
4 Liberty Mutual $1,449
5 Progressive $1,624
6 Allstate $1,906
7 First of Hawaii $2,006
8 AIG $2,397
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USAA quotes some of the best car insurance rates in Honolulu at around $926 a year. State Farm, GEICO, Liberty Mutual, and Progressive are also some of the best Honolulu, HI auto insurance companies.

In the rate table above, if you have coverage with Progressive and switched to State Farm, you could earn an annual premium reduction of approximately $537. Insureds with Allstate could save as much as $819 a year, and First of Hawaii insureds might reduce rates by $919 a year.

These estimates are averages across all drivers and vehicles in Hawaii and and are not calculated with a specific location for first-time drivers. So the insurer that is best suited for you may not even be in the list above. That emphasizes why you need to quote rates from as many companies as possible using your own specific driver information and vehicle.

The car, truck, or SUV that needs insurance is a large factor that determines whether or not you find the cheapest coverage for first-time drivers. Vehicles with lots of horsepower, poor crash test ratings, or a track record of large liability claims will cost significantly more to insure than safer models.

The list below outlines coverage premiums for a handful of the most economical vehicles to buy insurance for.

Cheapest Vehicles to Insure in Honolulu, HI
Vehicle Make and Model Estimated Cost for Full Coverage
Hyundai Elantra GLS Touring Station Wagon $3,412
Ford Escape XLS 4WD $3,418
Honda CR-V EX-L 2WD $3,444
Jeep Wrangler Sport 4WD 2-Dr $3,597
Toyota Prius $3,683
Chevrolet Silverado LS Regular Cab 4WD $3,805
Ford F-150 STX Regular Cab 2WD $3,811
Ford Edge SE AWD $4,014
GMC Sierra SL Extended Cab 2WD $4,045
Chevrolet Equinox LT AWD $4,053
Toyota Camry LE $4,045
Volkswagen Jetta LE 4-Dr Sedan $4,052
Toyota RAV4 Limited 2WD $4,045
Chevrolet Malibu Hybrid $4,051
Ford Fusion S 4-Dr Sedan $4,045
Ford Explorer Limited 4WD $4,077
Toyota Tacoma Double Cab 4WD $4,084
Dodge Grand Caravan SXT $4,077
Ford Focus SEL 4-Dr Sedan $4,220
Toyota Corolla S $4,251
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Cost estimates assume single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Hawaii minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in Honolulu, HI location which can decrease or increase auto insurance rates considerably.

Looking at the rates, you can figure that models like the Hyundai Elantra, Ford Escape, Honda CR-V, and Jeep Wrangler will be some of the most affordable vehicles to insure for new drivers. Rates will be more expensive just because there is more exposure for first-time drivers, but overall those specific models will probably have the lowest prices possible.

Cost comparison with and without full coverage

Finding cheaper auto insurance is important to the majority of vehicle owners, and one of the best ways to buy cheaper insurance for first-time drivers is to only buy liability coverage. The chart below visualizes the comparison of auto insurance rates when comparing full coverage to liability only. The rates are based on no claims or driving violations, $100 deductibles, single status, and no other discounts are factored in.

Averaged for all age groups, comprehensive and collision coverage on your policy costs $1,523 per year more than insuring for liability only. Many drivers will wonder when is it safe to stop buying full coverage. There isn’t a written rule to delete physical damage coverage on your policy, but there is a general convention. If the annual cost of your full coverage insurance is more than about 10% of the settlement you would receive from your company, then you might want to think about dropping full coverage.

For example, let’s pretend your vehicle’s book value is $7,500 and you have $1,000 physical damage deductibles. If your vehicle is damaged in an accident, the most your company will settle for is $6,500 after paying your policy deductible. If premiums are more than $650 annually for physical damage coverage, then you might consider buying liability only.

Which auto insurance company is best in Honolulu?

Picking the best insurance provider is difficult considering how many different companies insure vehicles in Honolulu. The information in the next section could help you select which insurers you want to consider when comparing insurance rates for first-time drivers. The rankings below are only made up of companies with a national presence, so companies that may only write in Hawaii will not be included in this list.

Top 15 Auto Insurance Companies for First-time Drivers in Honolulu, HI
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
USAA 98 100 100 94% A++ 98.6
American Family 98 89 100 86% A 95.4
State Farm 88 93 96 90% A++ 92.4
The Hartford 94 92 90 89% A+ 91.7
AAA Insurance 88 89 95 91% A 91.2
GEICO 84 93 93 89% A++ 90.3
Progressive 84 91 93 87% A+ 89.5
Allstate 85 90 92 88% A+ 89.3
Nationwide 87 88 84 90% A+ 88.7
Liberty Mutual 84 87 93 88% A 88.5
Esurance 85 80 95 87% A+ 85.9
Safeco 85 85 85 86% A 85.8
Farmers Insurance 78 87 88 79% A 84.3
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Data Source: Insure.com Best Car Insurance Companies

Drive responsibly or pay higher rates

The recommended way to enjoy the cheapest auto insurance prices in Honolulu for new drivers is to drive carefully and avoid accidents and keep your driving record clean. The diagram below highlights how speeding tickets and accident claims can impact insurance costs for different ages of insureds. The rate quotes are based on a single male driver, full physical damage coverage, $500 deductibles, and no discounts are applied.

In the previous example, the average cost of auto insurance per year with a clean driving record and no accidents is $1,253. Receive two speeding tickets and the average cost hikes up to $1,654, an increase of $400 each year. Now add in one accident along with the two speeding tickets and the 12-month cost of auto insurance for first-time drivers goes up to an average of $2,055. That’s an increase of $802, or $67 per month, just for being a little careless behind the wheel!

Why you should compare rates

Honolulu, HI auto insurance rates are calculated based on many things that can increase the cost of a policy. Simply having another birthday, buying a home, or getting a DUI can produce rate changes resulting in some companies being more affordable than others. Additionally, insurers change prices as often as every three months to help ensure profitability. A period of increased losses may result in higher priced premiums, while better underwriting may produce more affordable Honolulu car insurance rates.

To help illustrate this point, the chart below compares the cheapest car insurance in Honolulu, HI for a 40-year-old male driver with no violations or accidents, and a high credit rating. Based on his current rating profile, USAA has the best car insurance rates in Honolulu at $1,003 per year. This is $593 less than the average rate paid by Hawaii drivers of $1,596. State Farm, GEICO, Liberty Mutual, and Progressive also make the list of the most affordable Honolulu, HI auto insurance companies.

In this next rate comparison, we will give the driver in the first chart a chargeable accident, slightly worse credit, and a speeding citation. Since every car insurance company has a different formula to determine rates, getting updated rate quotes may now result in a different list of the cheapest companies as shown below.

State Farm now has the lowest car insurance rate in Honolulu, HI with USAA, Liberty Mutual, GEICO, and Allstate also being competitive. This example demonstrates why drivers need to compare rates when trying to find cheap insurance rates for first-time drivers. Car insurance prices can be altered by many risk factors and change frequently, so the most affordable company a year ago may now be quite expensive.